- 8 -
respondent contends that the availability of qualified attorneys
to handle cases such as petitioner's was not limited, and that
petitioner has failed to establish the existence of any special
factor that would warrant departure from the statutory cap.
Accordingly, respondent argues that an award of attorney's fees
in this instance should be calculated at the adjusted statutory
rate of $104 per hour.7
Respondent also disputes petitioner's claims for the
accountants, Victor Harris and Pamela Zimmerman. Respondent
argues that since the compensation rate for attorneys cannot
7 This Court uses the Consumer Price Index (CPI) for all
urban consumers to adjust the $75 hourly limit for increases in
the cost of living. Cassuto v. Commissioner, 93 T.C. 256, 273
(1989), affd. in part and revd. in part 936 F.2d 736 (2d Cir.
1991). We have held that 1981 is the appropriate base year for
calculating cost of living increases under sec.
7430(c)(1)(B)(iii). Bayer v. Commissioner, 98 T.C. 19, 23
(1992); Cassuto v. Commissioner, supra at 269. Nevertheless, the
Court of Appeals for the Fifth Circuit, to which this case is
appealable, has held that the appropriate base year for
calculating cost of living increases is Jan. 1, 1986. Heasley v.
Commissioner, 967 F.2d 116, 125 (5th Cir. 1992), affg. in part
and revg. in part T.C. Memo. 1991-189. We follow that holding
here. Golsen v. Commissioner, 54 T.C. 742, 756-758 (1970), affd.
445 F.2d 985 (10th Cir. 1971).
We note that the $104 hourly rate utilized by respondent
apparently represents the $75 statutory rate, adjusted by a 39-
percent increase in the C.P.I. from Jan. 1986 to July 1995. The
record indicates that a portion of the fees claimed by petitioner
was billed after July 1995. Nevertheless, petitioner's objection
to respondent's position relates only to the applicability of the
statutory cap, and not to the calculation of the $104 amount.
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